Will driverless cars mean the end of auto insurance?

KPMG, an advisory and research firm, predicts that these trends mean that within 25 years the personal auto insurance industry could shrink to less than 40% of its current size. If cars are self-driving, perhaps owners will only need to buy car insurance policies that cover car theft and non-crash damage such as hail and floods.

State Farm, the largest auto insurance company in the country, appears to be making plans to survive in this new world. One possibility could be for the insurance giant to reinvent itself as a “life management company,” as the company put it in a patent application recently published by the U.S. Patent Office.

State Farm’s patent application, “Aggregation and Correlation of Data for Life Management Purposes,” describes how the company could analyze data about a customer’s vehicles, home and personal health, find patterns and offer “personalized recommendations, insurance discounts, and other added values or services that the individual can use to better manage and improve his or her life.”